Renewable energy will be at the core of JSW Energy’s expansion to 20 gigawatts(GW), both through organic and inorganic route, Prashant Jain, joint managing director and chief executive officer told ET. The Sajjan Jindal-led company is on track to double its capacity to 10 GW by 2024 and aims to subsequently scale it up to 20 gw by 2029-30. “There is a global focus on renewable energy and now there is rationality in the sector. Other than Kamalanga and Ind-Bharat, the majority of our new capacity addition will come from renewable energy,” Jain said. The company aims to close the deal to acquire GMR Kamalanga Energy (1,050 megawatts) from GMR Energy before the end of the current fiscal 2019-20. Jain said the proposed acquisition of Ind-Barath Energy (Utkal) (700 mw) may be done by June as approval by National Company Law Tribunal is under process for the resolution plan submitted by the company. On Tuesday, JSW Energy reported a net profit of Rs 394 crore in third quarter of FY20, driven by a one-time write back, as against Rs 146 crore in the corresponding quarter of previous year. The total revenue declined by around 19% on a year-on-year basis to Rs 2,016 crore from Rs 2,492 crore in the corresponding quarter of previous year, reflecting the lower short-term sales and decline in fuel cost. The fuel cost for the quarter decreased by around 23% on year to Rs 1,115 crore due to moderation in the imported coal prices and lower generation. For power generation companies, fuel cost is a pass through and is reflected in the revenue. The company said that due to the restructuring of Jaiprakash Power Ventures (JPVL), JSW has written off around Rs 570 crore extended to JPVL which has been adjusted against reversal of existing provision of around Rs 454 crore and write-back of Rs 177 crore of JPVL contingent consideration payables in the company’s books. This has resulted in a one-time net gain Rs 61 crore in Q3FY20, which has boosted the bottomline in the quarter. JSW was in pact to acquire JPVL since 2016, but pulled out of the deal in 2018. In the December quarter, JSW Energy has made a provision of Rs 38 crore in the standalone financials towards impairment of its investments in South African operations. This has no impact on the consolidated financials as accumulated losses corresponding to the impairment amount have already been provided for in earlier periods, the company said.
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